Irvington’s ‘Sloppy’ Finances Need To Change, State Officials Allege

IRVINGTON, NJ — A new audit of Irvington’s municipal finances is raising questions from state officials, who allege that “sloppy accounting records” and other problems may be putting taxpayer funds at risk.

The Office of the State Comptroller (OSC) released a report that lays out its allegations earlier this week. View it online here.

The comptroller’s office also sent a letter to inform Gov. Phil Murphy, Senate President Nicholas Scutari and Assembly Speaker Craig Coughlin about its report, accusing Irvington officials of “repeatedly failing to comply with a plan for corrective or remedial action.”

Patch reached out via email to Irvington township administrators seeking comment about the comptroller’s report. We will update this article with any reply we receive.

The OSC’s first audit of Irvington, performed in 2009, found the general ledger was out of balance by $59.7 million. State officials made 21 recommendations and two years later, found that 13 had not been fully implemented.

The OSC’s latest review examined documentation from 2017 through 2023 and found that “minimal progress” has been made, officials said.

The findings included:

LATE REPORTS - On average, the township filed required financial reports 145 days, or approximately five months, late. The delays served to decrease transparency and hinder oversight of the township’s finances.

UNIDENTIFIED EXPENDITURES - Nearly $800,000 in “unidentified expenditures” were made without the budgetary approval of the governing body. The expenditures, flagged in a 2019 audit, circumvented budgetary controls.

LEASED OFFICE SPACE - The township council spent at least $200,000 over five years, leasing office space from a company that is partly owned by the CFO. This company also was the sole bidder, and the CFO submitted and signed the bid on behalf of the company. Local Government Ethics Law and the township municipal code bar officers or employees from having these kinds of conflicts of interest. The OSC is referring the matter to the New Jersey Department of Community Affairs' Division of Local Government Services for investigation.

LAPSED LICENSE - The CFO’s license lapsed multiple times. (Renewing a license requires taking classes and submitting an application on time.) The CFO has occupied the role since at least 2009.

BUDGET DISCREPANCY - The independent auditor repeatedly reported findings that the township’s various financial accounts were riddled with errors. OSC found a $3.8 million discrepancy between the 2021 general ledger and the grant budget status report. Cash disbursements also were not accurately recorded.

The OSC is asking the state to install an independent monitor who would oversee the town’s finances.

“Township leaders and staff didn’t even get the basics right,” Acting State Comptroller Kevin Walsh charged.

“For years, they ignored recommendations from the OSC, and from their own auditors,” Walsh said. “It’s clear that they need the day-to-day oversight of a monitor to get their house in order.”

Send local news tips and correction requests to eric.kiefer@patch.com. Learn more about advertising on Patch here. Find out how to post announcements or events to your local Patch site.